Miners ignore softer uranium price
Uranium markets posted varied performance in March, with the U3O8 uranium spot price declining 6.84 percent, from US$94.60 to $88.13 per pound. By contrast, uranium miners and junior uranium miners rose, gaining 1.75 percent and 2.52 percent, respectively.
One key factor influencing market behavior is the strategic positioning of buyers, who appear to be abstaining from active participation in the market.
Over the longer term, physical uranium and uranium miners have demonstrated significant outperformance against broad asset classes, particularly other commodities.
Given the increasing global recognition of nuclear energy’s importance to energy security and decarbonization, the demand for uranium is forecasted at 338 million pounds in 2040, requiring the supply to double by then.
Kazatomprom, the world’s largest uranium producer, cannot increase production in 2024 despite the U3O8 spot price increasing to well over their mines’ incentive levels.
Asian markets expect lower coking coal prices in q2
The seaborne coking coal market entered the second quarter of this year with signals of a decline in prices. This heightens fears that prices for premium products may fall below the lows reached in 2023, according to S&P Global.
At the same time, market participants view the recent rebound in mid-April as temporary amid fluctuations in futures.
The supply of premium coal from Queensland is expected to improve in the second quarter as this production center emerges from the rainy season. In addition, major mining companies are expected to close their fiscal year ending in June this year. In February, Australia has already shown a significant increase in coking coal exports, increasing foreign supplies by 15 percent m/m and 58 percent y/y – to 15.71 million tons. This happened against the backdrop of weak demand,
The oversupply was compounded by a sharp increase in spot cargoes offered by a major Australian coal producer, which rarely enters the market on such terms. According to sources, in March, this company shipped several shipments of coking coal on Panamax vessels.
World rice production to decline slightly in 2023/24 – IGS
The International Grains Council forecasts that due to a decline in the number of key exporters, world rice production in 2023/24 is expected to decline slightly year-on-year, and total consumption and stocks are also expected to decline.
World rice production is projected to resume an upward trend in 2024/25, driven mainly by growth prospects in the five major sectors, to reach a record 520 million tons (+2 percent), with consumption and stocks also expected to increase. However, as Indian restrictions are expected to remain in place, the potential for trade expansion in 2025 (Jan/Dec) is limited at around 50 million tons, unchanged year-on-year.
Protest planned on wheat price crash
The bumper wheat crop in Pakistan this year is seemingly becoming a nightmare for farmers as the market has crashed and growers are forced to sell the staple food crop much below the support price set by the government.
Since Punjab contributes more than 75 percent of the total wheat harvest, farmers of the province are frustrated and have announced a nationwide protest on April 25.
“We will not harvest wheat crop next year, if the exploitation of farmers continues, both from middlemen and the government,” remarked Kissan Board Pakistan Central Chairman Sardar Zafar Hussain Khan on Tuesday.
China’s sugar production to rise in 2024-25 season
The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) post in Guangzhou, China released a report with the following sugar production and consumption forecasts.
As per the report, China will produce 10.4 million metric tons of sugar for the 2024-25 season. This increase is because more land is expected to be used for growing both sugar cane and sugar beet. Despite this, sugar prices are likely to go down. China’s sugar consumption for the 2024-25 season is estimated to rise to about 15.7 million tons. The forecast for China’s sugar production in the 2023-24 season has been adjusted downward to 9.9 million tons. This is because the sugar content in the cane grown in Guangxi province turned out to be lower than expected.
Oil production edges up 1pc y/y in July-March, gas output falls 3pc
The country’s oil production rose 1 percent year-on-year during the first nine months of the current financial year, driven by fields such as Chak 2, Lashari Centre, Bolan East, and Bettani, according to a report by Arif Habib Limited.
The gas production showed a 3 percent year-on-year decrease. The reduction in gas production is attributable to declining production from fields such as Qadirpur, Sui, Kandhkot, and Uch (due to ATA at Uch Power Limited).
On a quarterly basis, Pakistan’s oil production showed a 3 percent year-on-year growth in the third quarter of this fiscal, while its gas production showed a 2 percent year-on-year decline.
Milk production down in March
Production in the 24 major dairy states totaled 18.8 billion pounds, down nine-tenths of a percent from March of 2023.
Production per cow averaged 2,115 pounds in March, down three pounds from last March. The number of cows in the 24 major producing states was down 71,000 head from year ago at 8.88 million head. That’s also 7,000 fewer milk cows than in February.
Production for the first quarter of 2024 was up one-tenth of a percent from 2023 at 56.9 billion pounds. The U.S. total milking herd in the first quarter was 9.33 million head. 16,000 fewer than the fourth quarter of 2023 and 85,000 head less than the first quarter of 2023.
California has the most production with 1.7 million head making 3.6 billion pounds of milk, followed by Wisconsin with 1.2 million head making 2.7 billion pounds. Michigan continues to get the most milk per cow with 2,350 pounds on average.